Gold News

Gold prices to reach $1,200?

Gold and oil have a "magic relationship" which could soon drive prices up, reports the National newspaper.

This is according to a spokesperson for the World Gold Council, who said that he believes gold prices may again reach the historic milestone of $1,000 an ounce, which was last seen in March 2008.

Moaz Barakat, managing director of the organization, said that the recent fluctuations are normal, but that the precious metal should rise on the back of crude oil soon, news which may be of interest to those looking to buy gold.

"With oil basically around $100 a barrel, gold prices should be at $1,000 or $1,200 [an ounce]. That's the magic relationship between the two," he said.

Meanwhile Ian McDonald of the Dubai Multi Commodities Centre said that he predicts record demand for buying gold in 2008.

Gold and oil are traditionally perceived as going hand in hand due to commodity funds which have emerged as major players.

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